2015, is a new year, a fresh start and a chance to make this year the best one yet. At least that’s what most of us think at the turn of a new year, but already and the end of the first month of this brand new year bad news rears its ugly head. The German Inverter manufacturer SMA has revealed some troubling news regarding their future as a company and what 2015 will bring for them and their staff.
Based in Niestetal – Germany, SMA is one of the world’s largest inverter manufacturers by market share and is undergoing a restructuring within their company. A proposed 1600 jobs will be lost by the end of July 2015, 1300 of which are in Germany itself, a dramatic increase from the formerly announced 600 job cuts last year, said to take place by the end of 2015. Well, I guess February is before the end of the year.
All this talk of job cuts comes as a result of current profit margins for SMA, in an effort to cut the companies’ costs by €160 million the corporates of SMA are looking to reduce their break-even point to less than €700 million by ‘refocusing on important development projects’.
SMA inverters have had a huge impact on the Solar PV market for many years, their actions as a company have a greater effect on the Solar industry as a whole. When they bought out the Chinese SMA Inverter manufacturer Zeversolar back in 2012 SMA looked to get a foothold in the Chinese market of Inverters, but 3 years later SMA is struggling to compete with the Asian manufacturers’ driven price pressure set to fall by 10 per cent.
Without the competing force of the German Inverter manufacturers will the Chinese be able to establish dominance in the Solar PV Inverter market or can SMA cut the fat and emerge stronger than ever?
SMA Inverters in 2024
Looking ahead to 2024, the solar industry has witnessed remarkable transformations since SMA, the renowned German SMA inverter giant, navigated the challenges of 2015. SMA’s restructuring struggles and competition with Asian manufacturers cast a lasting impact on the industry’s trajectory, moulding its landscape over the years. In the aftermath of SMA’s hurdles, the solar photovoltaic (PV) market experienced a paradigm shift, with Chinese inverter manufacturers seizing the opportunities created by the void left by their German counterparts.
By 2024, Chinese enterprises have firmly established their dominance in the solar PV inverter market. The strategic irony of SMA’s 2012 acquisition of Zeversolar, aimed at securing a foothold in China, became apparent as Chinese manufacturers successfully expanded globally, propelled by competitive pricing strategies. The anticipated 10% price drop in Asian-manufactured inverters materialized, further cementing their market supremacy.
Despite SMA’s initial setbacks, the industry showcased resilience and adaptability, fostering innovations and cultivating a more diversified market. Emerging players and technological advancements propelled solar energy into mainstream acceptance as a cost-effective and sustainable energy source. SMA’s experiences stand as a cautionary tale, underscoring the significance of adaptability and global competitiveness in the ever-evolving renewable energy landscape. As the industry matures, a blend of collaboration and competition continues to shape its trajectory, providing a glimpse into a future where solar power assumes an even more pivotal role in the global energy mix.
